05:08 AM EDT, 06/18/2024 (MT Newswires) -- (Updates with the stock movement in the headline and the first paragraph.)

Chegg ( CHGG ) shares rose more than 19% pre-bell Tuesday after the company said overnight it plans to lay off 441 employees, or 23% of its global workforce, as part of a restructuring plan.

The company said late Monday it expects to realize adjusted expense savings of $40 million to $50 million from the staff cuts, the shutting down of two offices outside the US, and other cost realizations in 2025. The move reflects the company's efforts to align its expense base with near-term revenue trends.

Chegg ( CHGG ) anticipates to incur a $10 million to $14 million charge related to the restructuring, with roughly half in Q2. A substantial amount of the charge is estimated to be incurred by Q4.

Price: 3.1200, Change: +0.51, Percent Change: +19.54